Aug 1, 2011 12:00 PM

A variety of legitimate tools have emerged to protect family and individual wealth from creditors

By Christopher M. Reimer

The field of asset protection is often stigmatized. The phrase may inspire thoughts of “deadbeats, scam artists, and tax evaders.”¹ However, the concept has become common and refers to nothing more than the process of an individual or family arranging assets to preserve as much value as possible in the event of a future creditor attack. Asset protection has “gone mainstream” and estate planners now urge professionals of all types to consider planning for the risk of future liability. This risk has increased as American society has grown more litigious. In reality, asset protection has a long provenance and many states have sanctioned a variety of legitimate tools — including exemptions, business entities and protective trusts — for protecting family and individual wealth from the creditors that threaten it.

In 1918, the National Conference of Commissioners on Uniform State Laws (NCCUSL) drafted the Uniform Fraudulent Conveyance Act (UFCA) and recommended its adoption by state legislatures. In 1984, the NCCUSL adopted a revised version of the UFCA to be called the Uniform Fraudulent Transfer Act (UFTA).² Forty-four states and the District of Columbia have enacted some form of the UFTA or the UFCA³ and similar statutes and principles exist in most common law jurisdictions.⁴

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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2011 Trust Glossary

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50 Years Ago This Month

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50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

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